Jackson Hsieh: I didn’t give an exact number. I kind of give this number that we did, whatever, 114 last year. It’s going to be in that probably going to be a little bit north of that. And it’s going to be a mix of industrial retail. I mean it’s going to be, it’s sort of very specific. So I would just say it’s very tenant-specific right now. Less industrial or retail oriented.
Linda Tsai: Got it. And then within Industrial, how do cap rates vary, whether it’s distribution, manufacturing, industrial and where are you seeing the best opportunities?
Jackson Hsieh: Yes. Go ahead, Ken, first.
Ken Heimlich: Right now, the acquisitions that we do tend to be a mix of those. If you compare a pure distribution to a pure light manufacturing, I’d suggest distribution is going to be a little lower cap rate. A lot of the facilities that we end up investing in typically have a mixture of those. It’s a manufacturing facility with as part of the real estate is the ability to do distribution. But we’re seeing great opportunities in all three of those. And in addition to that, we mentioned it earlier, the industrial outdoor storage has been a nice little sector that we’ve found some great opportunities in.
Operator: Our next question is a follow-up from Haendel St. Juste with Mizuho.
Haendel St. Juste: I wanted to come back. I don’t think you gave it, forgive me if you did, but can you outline what’s in the pipeline as of today? And any color on categories and range of cap rates? Thanks.
Jackson Hsieh: Yes. We didn’t talk about pipe, I mean I think generally, I would just say our pipeline first quarter was really good. It’s a cap rate is also somewhat good. It’s better than the fourth quarter. And it’s a good mix of industrial once again in finding those opportunities.
Haendel St. Juste: Okay. And then, Michael, for you, a follow-up. The 200 basis points of spread you mentioned you’re targeting. Maybe you could walk us through the math a little bit here, because just looking at traditional WACC, I can’t quite get there given where your cost of capital is versus the deals, you’re seeing in the cap rate. So maybe walk us through a bit more of your color on how you’re driving ballpark at that 200 basis points. Thanks.
Mike Hughes: Sure. Well, you have our disposition guidance, which you can sign whatever cap rate you want to, but we look at the cap rate as part of our cost of capital. We have about $125 million of free cash flow that we’re deploying. And then, we’re using our delayed draw term loan as the debt piece of it, which is plus 95 basis points.
Operator: Our next question is a follow-up from John Massocca with Ladenburg Thalmann.
John Massocca: I know we’re over the hour mark here, I’ll be quick. But just kind of a follow-up to my prior question. What are you expecting in terms of recoveries or renewals for the leases that are expiring in the quarter just kind of anything that’s either baked into guidance or just kind of general thoughts would be helpful.
Ken Heimlich: Yes. This is Ken. For 2023, what we think as far as the 2 primary metrics, renewal recapture. We do think renewals are going to be a little bit lower than historic, which was around the 90% mark on the recapture. We think we’re going to be in the same range as historic, which is the mid-90s.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jackson for any closing remarks.
Jackson Hsieh: All right. I want to thank you all for participating on our fourth quarter earnings call. We’re very confident in our portfolio, it’s tenancy and our associates. And we look forward to meeting many of you next week at the Citi Global Real Estate Conference. So thank you very much.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
